Yesterday, the Pound weakened against both the Euro and the Dollar before staging a slight recovery. Recent Brexit related pessimism was exasperated by the UK government’s reveal of the Internal Market Bill which proposes no checks on goods moving between Northern Ireland and Great Britain, but critics have said that this may break international law. Irish PM Martin has warned the UK against this bill saying that it will lose the trust of the EU. Reuters has reported that the EU could launch a legal case against the UK if today’s talks do not offer reassurance on the matter.

The main focus for the day will be the ECB monetary policy statement and press conference in the afternoon. The market will pay close attention to for any indications of a change in their monetary policy stance depending on whether the central bank believes that Eurozone economies will recover quickly from the pandemic or if they express fears about rising cases on the continent. The Euro remains strong for the time being against both the Pound and the Dollar.

US unemployment claims are due at 1:30pm today which is likely to cause some short-term volatility for the greenback. Tensions remain between the US and China, with 1,000 Chinese students and researchers having their visas revoked for being a security risk. Speaker of the House of Representatives Pelosi has warned the UK that if the Good Friday Agreement is undermined then a UK-US trade deal will not pass through Congress.